Finance - Investment

Finance is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainty and risk. Finance can also be defined as the science of money management. Finance aims to price assets based on their risk level and their expected rate of return. To invest is to allocate money in the expectation of some benefit in the future. In finance, the benefit from investment is called a return. The return may consist of capital gain and/or investment income, including dividends, interest, rental income etc. The projected economic return is the appropriately discounted value of the future returns. The historic return comprises the actual capital gain and/or income over a period of time.